Recent Lease Extension: Five Years Remaining on a Corporate NN Lease
Two Additional Five-Year Options with 10 Percent Rent Increases
Closest Sherwin Williams Location is About 45 Miles Away
"BBB" Rated Tenant by S&P - Investment Grade
$14.98 Billion in Net Sales
Build-to-Suit - 1992 Construction
2246 Promenade Court, Galesburg, IL 61401
Sold Price: $505,000
Sold CAP Rate: 7.05%
Net Operating Income $35,578
CAP Rate 6.71%
Gross Leasable Area 5,000 SF
Price per SF $105.98
Year Built / Renovated 1992
Parcel Size .49 Acres
The property, located at 2246 Promenade Court, is situated in the most viable retail center in the area. Sherwin Williams not only renewed their lease, but they also requested two additional options. This shows their commitment to this location. This has been a great site for them as indicated by their strong historical occupancy; tenant since 1992, 26 years. Currently, there is another five years remaining on the NN lease that will be in place until March 31, 2023, plus two additional five-year options with 10 percent rent increase in each option. There are minimal landlord responsibilities including roof, foundation, concrete parking lot, HVAC, and system services to the premises.
This location was strategically selected for a build-to-suit store in 1992. The store is situated on the ring of Sandburg Mall, which is being redeveloped. It is in close proximity to huge traffic generators, Target, and Lowe's, plus many other retail stores and services. This Sherwin Williams serves a wide area considering the nearest Sherwin Williams store is 45 miles away in Canton, Illinois. Customers enjoy easy access, only 3.3 miles away from four-way interchange Interstate 74 (US 110, Chicago-Kansas Expressway). The Galesburg population is 33,000 within a five-mile radius.
Sherwin-Williams maintains a stable investment grade credit rating of "BBB" on the S&P. Sherwin Williams has acquired competitor Valspar for $9.3 billion. With 4,000 plus locations, Fortune 500 company Sherwin Williams is publicly traded on the NYSE under the symbol "SHW." Corporate sales have increased 11.3 percent to $11.34 billion in past 24 months.